Exploring the power of Financial self-efficacy in acceleration of financial inclusion among adults

The problem of financial exclusion still persists in the fifth most populous state of the world, i.e., Pakistan which pose a significant threat to the Pakistan’s economic development. This research applies the idea of financial inclusion in an effort to examine the factors that contribute to adults' levels of financial inclusion. One of the variables that will be used in this investigation is financial self-efficacy, which will serve as a mediator. Using a method known as purposive sampling, this study collects data from a total of 406 adult inhabitants of Pakistan over the course of five months, beginning in January 2023 and ending in May 2023. The survey itself is in the form of a questionnaire. For the purpose of scale validation, confirmatory factor analysis was used, whereas structural equation modeling was performed for the purpose of testing hypotheses. A bootstrap method based on percentiles and a confidence interval of 95% was used to test mediation. According to the findings of the research, a person's level of financial self-efficacy serves as an essential and substantial mediator between the association between 1) Financial literacy and financial inclusion, and 2) Digital consumer protection and financial inclusion. In addition, it was shown that an increase in financial literacy, the utilization of mobile money, and digital consumer protection all substantially led to an increase in financial inclusion. The findings of the research give significant advice for policymakers to enhance financial inclusion in the context of developing countries by enhancing financial literacy programs and implementing strong consumer data protection laws. This may be accomplished by improving financial inclusion in the context of developing countries.